Key Highlights

• Repo rate remains unchanged at 5.25 percent

• All key policy rates kept steady, ensuring policy continuity

• RBI maintains a neutral stance and data driven approach

• GDP growth for FY26 projected at 7.4 percent

• Inflation expected to remain low at 2.1 percent

• No immediate impact on loan EMIs for borrowers

• Next policy review scheduled for April 6 to 8, 2026

RBI Keeps Rates Steady in February 2026 Policy

The Monetary Policy Committee of the Reserve Bank of India announced its latest policy decision on February 6, 2026. Under the leadership of Governor Sanjay Malhotra, the committee unanimously decided to keep the repo rate unchanged at 5.25 percent.

The central bank also retained its neutral stance, indicating that it is closely watching economic developments before taking any future action. This shows that the RBI is comfortable with the current economic situation and prefers stability over quick changes.

Key Policy Rates After the Latest Review

All major policy rates were kept unchanged:

• Repo Rate: 5.25 percent - rate at which RBI lends to banks

• Standing Deposit Facility: 5.00 percent – rate for parking excess funds

• Marginal Standing Facility: 5.50 percent - emergency overnight borrowing rate

• Bank Rate: 5.50 percent – long term lending rate

This unchanged rate corridor shows continuity in monetary policy and gives clarity to banks and financial markets.

Growth and Inflation Outlook Remains Positive

The RBI shared updated projections for the economy along with the policy decision.

• GDP Growth for FY 2025 to 26: 7.4 percent

• CPI Inflation for FY 2025 to 26: 2.1 percent

Strong domestic demand, steady investment activity, and services growth are supporting the economy. At the same time, inflation is expected to stay well within the RBI’s comfort range.

This balance gives the RBI room to support growth while remaining alert to any supply side risks such as global commodity price changes.

What This Means for Loans and EMIs

Since the repo rate is unchanged, borrowers will not see any immediate change in their loan EMIs.

• Home loans remain stable

• Auto loans remain stable

• Other repo linked loans remain stable

For households, this means predictability in monthly payments. For banks, it avoids sudden changes in lending and deposit rates.

What the Neutral Stance Indicates

By keeping a neutral stance, the RBI has not indicated whether the next move will be a rate cut or a rate hike. Instead, future decisions will depend on :

• Inflation trends

• Global interest rate movements

• Commodity prices

• Domestic growth data

This shows a careful and balanced approach rather than reacting to short term market movements.

Repo Rate Trend Over the Past Year

The flat trend over this period shows a phase of policy stability after years of global rate changes.

What to Watch in the Next Policy Meeting

The next MPC meeting is scheduled for April 6 to 8, 2026. Market participants will closely track :

• Inflation data

• GDP growth numbers

• Global monetary trends

• Commodity price movements

These factors will influence whether the RBI continues with its pause or changes direction later in the year.

Final Takeaway

The February 2026 policy decision highlights confidence in India’s economic stability. By keeping rates unchanged and maintaining a neutral stance, the RBI has chosen to support steady growth while ensuring price stability. At the same time, it has kept its options open for future action based on incoming data.